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not been sustainable. State budget continues to
face difficulties, public debts have been at high
rate, government liabilities exceed 50% of GDP, the
proportion of development spendings decreases to
15.2%out of the total budget in2015. The investment
scale for essential sectors such as infrastructure,
education – training and technology has been
negatively affected. Interest rates have been high,
inflation and large balance of the macroeconomy
have not been sustainable and insured.
Thirdly,
although there have been attempts in
improving tectonic mechanism, the institution
quality compared to other regional countries has
been weak. Most of international assessments of
institutional quality of Vietnam have lower ranks
compared to other 6 ASEAN countries. With a
sample of 11 assessment reports conducted by
international organizations, the institutional
quality of Vietnam has been evaluated reasonable
at capacity and innovation and ranked 47 out
of 127 countries, stood the third place, after
Singapore and Malaysia. In other assessment
reports, Vietnam has been evaluated with lower
performance of institution compared to other 6
ASEAN countries.
Policy implications to Vietnam
Firstly,
to formulate an industrial development
strategy suitable for the practical situations
of Vietnam. Light industries such as garment
and footwear, agro-forestry-fishery processing
industries, and auxiliary industries should be
considered as a key direction of the present period.
The next step should be towards high technology
and value-added industries. In the second step of
development, the government needs more specific
policies to create opportunities for development
and expand the development space of the industry.
Specifically, it is necessary to prepare the conditions
and environment for the development of electronic
engineering and information technology.
Industrial policy should be built on a
medium- and long-term development plan in
a sustainable manner and linked to: (i) type of
product; (ii) sector, area and zone; (iii) category,
scale and sector; (iv) chain of production.
Simultaneously, it is necessary to ensure
consolidation in improving tectonic mechanisms
and policies for industrial development as well
ranked 90, and 82 in 2016. In 2017, together with
arduous reform, Vietnamranked 68 out of 190 of the
world ranking. According to the annual report of
national competitivity issued by World Economic
Forum, Vietnam ranked 55 in 2017 increasing by 5
compared to 2016 and 20 compared to 2012.
Fifthly
, the positive responses of private sector
before the implementation of tectonic role for
economic growth of the Government.
In the context of improving business
environment, for the year 2017, there were 126,859
new enterprises registering a total capital value of
1,280.9 thousand billion VND, increased by 15.2%
in number and by 45.4% in registered investment
value compared to that in 2016. By the end of
December 2017, there were 26,448 enterprises
returning to business, decreased by 0.9% compared
to 2016...
Limitations in tectonic role
for economic growth in Vietnam
In addition to positive results, tectonic role of
the government in developing economy still faces
problems:
Firstly,
the determination of industrial
development strategy suitable for economic
development of Vietnam has been limited. After
more than three years implementing the Decision
2146/QD-TTg dated 1st December 2014 of the
Prime Minister on “Restructuring industry and
commerce for industrialization, modernization
and sustainable development by 2020 and outlook
until 2030” and the Decision 11476/QD-BTC
dated 18th December 2014 of the Minister of
Industry and Trade on action plan of industry and
trade to implement sectoral restructure project,
howeve, the results have been limited. Conference
document of the 4th National Assembly XII
defined: “Restructuring industry, construction and
services has not been implemented practically and
effectively”.
In fact, industrial growth has not been
improved, working productivity of industries has
been low. Industries mainly have components in
low value added phases in global value chain.
The development of industries has not met the
requirements of domestic production sectors, and
even developed in foreign-invested areas.
Secondly,
the macroeconomic environment has
